Why you are on the hook without it
Mexican federal law requires every vehicle on a federal highway, road or bridge to carry insurance covering injury and damage to third parties (Ley de Caminos, Puentes y Autotransporte Federal, art. 63 Bis), and driving without it carries a fine (art. 74 Bis). Baja Bound's FAQ says Mexican insurance shows the authorities that you are able to pay damages to third parties (Baja Bound FAQ). Without a Mexican policy behind you, the damage you cause is yours to settle personally. Scary, right?
This is why it’s so important to have Mexican auto insurance arranged before you drive on Mexican federal roads, where third-party liability insurance is required (art. 63 Bis). Your auto policy in the United States or Canada is not considered proof of financial responsibility under Mexican law (Baja Bound’s FAQ). Thinking you’ll just risk it and hope for the best? Without a Mexican policy, the damage you cause is yours to settle personally, and you do not want to spend your trip sorting that out.
Now, for the smart traveler, there are temporary auto insurance policies you can purchase for travel in Mexico. Policies can be for just one day up to one year if you plan to be in the country longer. A liability-only policy is the least expensive way to go and it will provide coverage for medical and property damage to third parties if they are involved in the accident. Full car coverage policies can also be purchased and they will cover damage to your own vehicle and often times will let you get it repaired in the U.S. (Baja Bound's FAQ says that in many cases the vehicle can be repaired in the U.S. or Canada: Baja Bound FAQ).
The good news is you can buy these policies online. SmartGringo links to temporary insurance sold by our affiliate partner Baja Bound; see the price table for current quotes. Baja Bound says on its quote page that it works with “A” rated companies, and that both Chubb and HDI are rated mxAAA by Standard and Poors.
Leaving this week? Get a temporary policy quote.